According to the Federal Housing Finance Agency (FHFA), St Louis metro area home prices rose 8.3% for the 12 months ending Sep 30, 2020. That is a record-high appreciation rate for St Louis that goes back to the late 1970s, when prices were increasing by double-digits due to high inflation. Although that may seem great for sellers and bad for buyers, due to all-time lows for mortgage rates, and the fact that our region is among the lowest cost housing areas in major markets around the country, it is a win-win for both sides.

Crazy that it is happening in a pandemic year, but there is more demand for less supply, and that sums it up. The national appreciation rate was 7.8% over the same period according to this index, placing St Louis ahead of the national average. This would not be surprising, as I noticed numerous buyers from out-of-town searching and buying my listings this year, possibly looking for a lower cost metro that retains big city culture, food choices, architecture and entertainment, or our growing job base.

The FHFA index adds that STL metro home prices are up 51% since the bottom in 2011, and 24% since the peak in 2006. Adjusted for inflation, prices are 4% lower than 2006. The index measured the top 100 metro areas in the US, with the lowest increase at 2.1% in Baton Rouge and the highest at 16.4% in Boise. That is amazing to me that out of our largest 100 metros, not a single one was less than a 2% increase.

I will publish my own findings next month based on the local MLS sales for 2020. Out of all the national home price figures, I trust FHFA the most, and my numbers are mostly in line with theirs. I trust CoreLogic and Zillow appreciation rates the least.

The winter season has not slowed buyers down this year, with pending sales continuing to outnumber available homes in most submarkets. Don't delay your search for a home, or your getting it ready for market, there is no winter slow-down this year.